SOUTHERN AFRICAN VEHICLE RENTING AND LEASING ASSOCIATION
LEASING AND FLEET MANAGEMENT, RENTAL AND ASSOCIATE MEMBERS
MINUTES OF THE QUARTERLY MEETING
OF MEMBERS OF THE SOUTHERN AFRICAN VEHICLE RENTING AND LEASING ASSOCIATION
HELD ON THURSDAY, 22 JULY 2010 AT 14H30
AT THE JOHANNESBURG COUNTRY CLUB, AUCKLAND PARK
PRESENT :
Mr D Armstrong Avis Fleet Services
Mr R Banoo Bidvest Capital
Ms T Bergmann Mercedes SA
Ms K Booth Volkswagen SA
Mr R Booth Budget Car Rental
Mr R Bokabe Volkswagen SA
Mr G Corbett Europcar
Ms Q Davhana Audi
Ms A Dicken Eqstra Fleet Services
Ms D Dippenaar Mercedes SA
Mr M Dormer ABSA Vehicle Management Solutions
Ms L du Plooy SBFM
Mr W Duvenage Avis
Mr H Erasmus Pender Car Rental
Mr J Fourie Pender Car Rental
Mr F Fourie Toyota SA
Mr G Galloti Hyundai SA
Ms G Handley Volkswagen SA
Mr F Hornsby Tempest Car Hire
Mr T Jenkins Avis Fleet Services
Ms D Nathan-Jones Europcar
Mr T Jones General Motors SA
Mr M Kent-Brown Toyota SA
Mr K Kirsten ABSA Vehicle Management Solutions
Ms L Kotze Nedbank
Mr R Lachman ABSA Vehicle Management Solutions
Mr L Loyson Kia SA
Mr H Makamanzi Fleet Africa
Ms S Marais Ford Motor Company SA
Ms S Manna Mercedes SA
Mr R Marchington Standard Bank Fleet
Mr R McKay First Car Rental
Mr N Mhlanga Fiat SA
Ms C Nathan Bidvest Bank
Mr J Odes Hertz
Mr P Pauwen U-Drive
Mr A Penderis Pender Car Rental
Mr L Pillay Peugeot Motors
Mr V Pillay ABSA Vehicle Management Solutions
Mr R Reicmel Hyundai SA
Ms P Scrooby Budget Car Rental
Ms P Singh General Motors SA
Ms P Sterley Kia SA
Mr P Smallman Volkswagen SA
Mr B Smith General Motors SA
Mr L Smith Avis
Ms B Taljaard Phakisaworld Fleet
Mr M Tatalias SATSA
Mr T Thobejane Ford Motor Company SA
Mr C Thomson Datadot
Mr G Tiffin General Motors SA
Ms R Tolken Nissan SA
Ms E Tryon Sizwe Car Rental
Ms V van den Bergh Savrala
Ms C van Eck Eqstra Fleet Management
Mr A van Heerden Hyundai SA
Ms W van Rooi Hyundai SA
Ms B Vieira SBFM
Ms I Wessels Nissan SA
APOLOGIES : Mr N Biffen Hertz
Ms C Delport Toyota
Mr C Else Avis
Ms B Perlee Avis
Mr T Shawe Top Notch Car Rental
Mr W Van Schie Renault
Mr J Osborne RMI
BY INVITATION :
Mr W Fletcher Alchemy Financial Services Incorporated
Mr S Visagie Stentor Consulting CC
Action1. NOTICE OF THE MEETING
The notice convening the meeting was taken as read.
2. CONFIRMATION OF THE MINUTES
The minutes of the previous meeting of the members of the Leasing and Fleet Management, Rental and Associate Members, held on 22 April 2010 (copies of which had been previously circulated), were accepted and signed by the Chairman as a true reflection of the proceedings.
Paul welcomed Michael Tatalias, CEO of SATSA.
3. MATTERS ARISING FROM THE PREVIOUS MINUTES
As there were no matters arising, Paul Pauwen informed those present that all new issues would be dealt with under the proposed agenda.
4. FINANCE
Lance Smith gave a brief summation of the financial position of the association for the year ending 2009 which reflected a nominal surplus, if one excluded an unexpected profit that had been retained from the mobility project. He further gave details around the make-up of professional fees and other large income and expenditure items. He then presented the proposed budget for the 2010/2011 year which showed nominal increases around the 5% to 7% mark, again resulting in a nominal surplus. Lance Smith then drew the attention of those present to the basis of how the subscriptions for the year ahead were determined and the amounts that were to make up the subscriptions for the year ahead. Lance Smith advised that anyone who wished to have a copy of the budget was welcome to request such from Alchemy. Although these amounts were only to be ratified at the AGM in October, there appeared to be an acceptance thereof by those present. / For Info
All
Action
5. AARTO
George Corbett was called upon to give those present a status update in respect of the AARTO roll-out. Against a diagrammatic presentation he explained the legislative process from the receipt of an infringement notice to when assets could be confiscated. He also advised that in respect of the gateway that had been offered to SAVRALA to access AARTO, that it was hoped that this would happen prior to the issuing of the infringement notice. He further advised that the current legislation around AARTO needed to be amended or the original intention wouldn’t work. Members were reminded that access was only to be granted by SAVRALA and also that the SANRAL discussions were also underway. / For Info
For Info
6. PUBLIC RELATIONS
Val advised those present that the new public relations company, namely Adzoo, had been appointed and gave feedback in respect of events that had taken place over the last month or so. These included issues such as the participation at the Tourism Indaba, road tolling, the AARTO, eNatis access and the poor road conditions affecting the industry. She also advised that five members had already signed up for “the code initiative” which dealt with child protection. In the months ahead issues around fleet risk, feedback from the CEO’s of the various companies in respect of the results of the World Cup on the rental industry, the education initiative and MOTY would be dealt with. Lance Smith stated that as could be seen, most of the issues being dealt with were rental issues, and that the leasing section is required to give more input regarding PR. In respect of Government lobbying, which was dealt with through the TBCSA, issues such as:
– The Tourism Leadership Dialogue, which had included the 2010 readiness (March), Media Tourism 2010 (May), National Tourism Sector Strategy (July) / CEO Forum: Transport Issues 2010, a Tourism Index in conjunction with FNB and the TBCSA to be managed by Grant Thornton. In respect to this index, members were asked if there would be any objection in respect of SAVRALA providing statistics and if so to come forward. Lance Smith advised those present in terms of what statistical information was to be shared in respect of the Tourism Index and being that they were fairly general in nature, no objections were received.
– FTTS (the code).
– SATSA Conference. A decision had been taken by the NEC that SAVRALA was to participate in the SATSA conference to be held in September.
– TISIMA: interaction with TISIMA who were the body who were responsible for the AARTO / E Natis gateway issue.
MOTY
Val advised members that the MOTY function was still on track for the 23rd of October and that although 23 tables had been sold, at a cost of R12000 per table, that the Association was looking to have sold 30 tables for the event. / For Info
For Info
ALL
7. RENTAL STATISTICS
Members were advised that the new template had been approved which now included tyres, glass and c/cards and was to be put into effect from 1 August 2010. Members were reminded that the historical data in respect of c/card transactions were to be submitted by the end of September 2010. All members were advised that they would have to submit statistics, no matter what the size of the business. A further index comparison was also proposed being hotel room rates versus an entry level citi golf or similar vehicle over the last 10 years. The meeting requested that the vehicle index be based on a typical group B vehicle.
Lance Smith gave a brief presentation of the rental statistics for the 6 months ending June 2010 which reflected the initial results after the World Cup. / ALL
For Info
Action
8. EDUCATION
Members were advised that a new education provider had been considered, namely DIDISA College, who had showed their willingness to be included and who had provided a prospectus for the NEC to consider. DIDISA was an accredited FET training organization and the material included courses on AARTO/ ENatis licensing and other related items. Lance Smith proposed that the material be left to the HR members and Val was asked to inform those present at the next HR forum to determine if there was interest. / For Info
Val/HR
9. SAVRALA PROFILE
Val reminded members that effectively representations by SAVRALA were to be seen as representative of the body as a whole and required 100% support and that individual members should refrain from giving individual company positions. / ALL
10. THE CPA
Members were advised that the CPA legislation was not finialised and that there could be a delay in the October 24 implementation. / ALL
11. THE ALIGNMENT OF ACCRIS CODES
A working group was to be set up hopefully before the end of September to deal with this issue. / For Info
12. REPORT BACK – LEASING
Linda Kotze advised members that the information requested by Treasury and SARS in respect of input relating to the fringe benefit tax around motor vehicles had been given and asked Riaz Lachman to report back on the meeting held between the parties. Riaz Lachman explained that basically four issues had been debated, those being:
· The viability of increasing the fringe benefit percentage from 2.5% to 4%;
· The inclusion of VAT when calculating the deemed value of the vehicle;
· The fact that maintenance plans should be excluded from the deemed value of the vehicle; and
· The issue of where the motor vehicle was regarded as a tool of the trade in respect of where it was housed and the use of the vehicle itself.
In all matters SARS and the Treasury took cognisance of the various proposals and explanations and it was believed that these discussions might well result in the reduction of the fringe benefit percentage to somewhere between 2.5% and 3.5% as well as the fact that the possibility existed that once again only 20% of the travel allowance would be taxed monthly as opposed the current 80% although individuals would continue to have to validate the expenditure by means of a log book. They had also requested further statistics and all information requested was to be submitted by the following day in order that they could be included in the representations to Parliament. A copy of the submission was emailed to members. / For Info
For Info
ALL
13. EDUCATION
Linda then called on Mike Dormer to give a brief feedback in terms of education. Mike advised those present that fairly stringent agreements in respect to the education initiative had been drafted making reference to the obtaining of re-bates and royalties and it was hoped that these would be in place before the next quarter. He also requested members to give feedback with regard to what types of short courses and refresher courses it was believed would be of value to members and which could possibly be dealt with through the various service providers. Enrolments would be able to start towards the end of 2010 in respect of the 2011 year. / For Info
Members
Action
14. STATISTICS
David advised those present that due to the fact that the dates of the quarterly meetings didn’t quite tie in to the required submission dates, and therefore that he was unable to present the statistics for the last quarter, but that these dates were to be amended in order that the information would be available prior to the relevant quarterly meeting being convened. / For Info
15. TECHNICAL
Vernon advised those present that various Nuts and Bolts meetings presented by Nissan, Ford and Mercedes had all been well attended and were of a high standard, however, no results from the meeting at Mercedes had as yet been received. General Motors advised that their technical meeting was now to happen in August, and Toyota and Hyundai were also to have their meetings later in the year. Members were also advised that the costs in respect of C02 emissions were effective from 1 September 2010 and that this tax only applied to vehicles acquired on or after the 1st of September 2010. This tax was to be reflected separately on the invoice in a rand amount. / For Info
16. GENERAL
Linda Kotze asked members if they would consider a sponsorship in respect of casual day to the Sunshine Association. Members were advised to contact the Association directly in this regard. Linda further thanked Hertz who had offered to sponsor the guest speaker at the AGM. Paul Pauwen also advised members to start considering the appointment of office bearers for the coming year and stated that he would be unable to stand.
Paul Pauwen then introduced the speaker for the day, Japh Chuwe, the Registrar of the RTIA, who was to give a brief presentation around the development and roll-out of the AARTO Legislation.
There being no further business to discuss, the meeting terminated with a vote of thanks to the Chair.
______
DATE CHAIRMAN
______
PLACE